Tariffs are ‘simply inflationary,’ economist says: Here’s how they fuel higher prices

Key Points

Tariffs are expected to raise the U.S. inflation rate in 2025, Federal Reserve chair Jerome Powell said Wednesday.
U.S. businesses pass tariff costs on to consumers, both directly and indirectly, economists said.
An increase in the inflation rate may be relatively short-lived, if tariffs amount to a one-time price increase, economists said.

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